Chattem Announces Extension of Consent Solicitation

CHATTANOOGA, Tenn.--July 17, 2006--Chattem, Inc. - a leading marketer and manufacturer of branded consumer products, today announced that it has extended until 5:00 p.m., Eastern Time, on Tuesday, July 18, 2006 (the "Expiration Time") the previously announced solicitation of consents from the holders of its $107.5 million 7% Senior Subordinated Notes due 2014 (the "Notes") to an amendment to the related indenture to increase Chattem's capacity to make restricted payments by an additional $85.0 million, including payments for the repurchase of Chattem's common stock. The consent solicitation, which commenced June 26, 2006, was originally scheduled to expire on Friday, July 14, 2006. Capitalized terms used in this press release that are not defined herein shall have the meanings given to such terms in Chattem's consent solicitation statement dated June 26, 2006.

All other material terms of the consent solicitation remain unchanged. Holders of the Notes who have already properly delivered their consents do not need to deliver new consents. Consents (whether previously or hereafter delivered) may only be revoked in the manner described in the consent solicitation statement.

Chattem may further extend the consent solicitation on a daily basis or for a specified period of time. If Chattem further extends the consent solicitation, it will provide notice of such extension to the Information Agent on the next business day following the scheduled Expiration Time, which will be followed as promptly as practicable by notice thereof to holders. Chattem currently intends to notify holders of any such extension solely by issuing a press release, but may elect to utilize other means reasonably calculated to inform holders of such extension.

If Chattem elects to further extend the period during which the consent solicitation is open, all consents received will remain valid (and subject to revocation as provided in the consent solicitation statement) until the date and time to which the Expiration Time has been extended.

For a complete statement of the terms and conditions of the consent solicitation and of the proposed amendment to the indenture, holders of the Notes should refer to the consent solicitation statement dated June 26, 2006. This release is for informational purposes only. It does not constitute an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents. The consent solicitation will only be made by means of the consent solicitation statement.

Questions regarding the consent solicitation may be directed to Wachovia Securities, Liability Management Group, at (704) 715-8341 or toll- free at (866) 309-6316. Global Bondholder Services Corporation is serving as Information Agent in connection with the consent solicitation. Requests for assistance in delivering consents or for additional copies of the consent solicitation statement (or the consent solicitation statement supplement) should be directed to the Information Agent at Global Bondholder Services Corporation, 65 Broadway, Suite 704, New York, New York 10005, Telephone: (212) 430-3774.

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chattem to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in Chattem's Annual Report on Form 10-K for the fiscal year ended November 30, 2005 and the other documents Chattem files with the SEC from time to time. Chattem undertakes no duty to update its forward-looking statements, including its earnings outlook.

About Chattem

Chattem, Inc. is a leading marketer and manufacturer of a broad portfolio of branded OTC healthcare products, toiletries and dietary supplements. Chattem's products target niche market segments and are among the market leaders in their respective categories across food, drug and mass merchandisers. Chattem's portfolio of products includes well-recognized brands such as Icy Hot(R), Gold Bond(R), Selsun Blue(R), Garlique(R), Pamprin(R) and BullFrog(R). Chattem conducts a portion of its global business through subsidiaries in the United Kingdom, Ireland and Canada. For more information, please visit Chattem's website: www.chattem.com.